Budget Update

June 16, 2009

Members of the Rutgers Community:

We have received many inquiries concerning the status of the university’s budget and its relationship to our various employee compensation programs and agreements, particularly with regard to any scheduled or negotiated July 1 salary increases.

First, please be assured that we understand the stress and anxiety the current uncertainty is causing, and that we very much appreciate your patience and continued good work during these trying times.

As you may know, in a recent adjustment to his initial Fiscal Year 2010 budget proposal, the governor has proposed an increase to the Rutgers budget of $15.4 million in federal stimulus money, for which we are very grateful. However, as we have previously noted, even with these additional funds we are still confronted with a significant budgetary shortfall. Further, the stimulus money is only one-time money, and it comes with certain qualifications that we must meet in order to access the funds. Moreover, there is a cap on tuition and fees that will affect our overall revenues. The Rutgers administration has been in contact with the leadership of the university’s various bargaining units over the past several weeks regarding the July 1 compensation programs; now that the governor has reached agreement with the CWA, the state’s largest union, those discussions will intensify. As of this date, no final decisions have been made. We are working hard, together with union leadership, to do what is right both for all of our employees and for the future of the university.

We will be in touch with additional information as soon as we can. In the meantime, thank you again for your patience and for all that you do for Rutgers.

Richard L. McCormick
President
Rutgers, The State University of New Jersey